- Putin Visits Crimea as 20 Die in Eastern Ukraine Clashes. Russian President Vladimir Putin visited the Crimea region he annexed in March amid growing tensions as Ukraine said about 20 pro-Russian separatists died in clashes in the eastern port city of Mariupol. Putin’s trip to Sevastopol, the home of Russia’s Black Sea Fleet, was his first since the Crimean peninsula seceded from Ukraine. Ukrainian Interior Minister Arsen Avakov said on his Facebook account at least one serviceman was killed and five wounded in the fighting in Mariupol after about 60 rebels attacked a police building. The city is less than 60 kilometers (37 miles) from the Russian border.
- Putin's Export Machine Rolls Right Over Sanctions, Outcry. Vladimir Putin’s incursion into Ukraine and the international condemnation that followed haven’t put a dent in Russia’s exports of gas and raw materials. The world’s largest energy producer shipped 2 percent more gas to Europe in the first three months of 2014 than it did in the same period last year, government data show. Diesel output for export increased, while cargoes of grains, palladium and nickel either climbed or were about the same. Russia’s crude oil exports fell 0.2 percent from last year.
- Putin Going After Chinese Money to Sustain Sagging Russian Economy. Russian President Vladimir Putin plans to open the door to Chinese money as U.S. and European sanctions over Ukraine threaten to tip the economy into recession, according to two senior government officials.
- IMF May Cut China 2014 Growth Forecast, Fund Official Says. The International Monetary Fund may cut its forecast for China’s economic growth this year, according to Changyong Rhee, director of the fund’s Asia and Pacific Department.
- China’s Stocks Fall for Fourth Weekly Drop as Great Wall Plunges. China’s stocks fell, sending the benchmark index to a fourth week of losses, after Great Wall Motor Co. delayed sales of a vehicle and small-company shares slumped amid concern new equity sales will divert funds. Great Wall Motor Co., China’s biggest maker of sport utility vehicles, plunged 10 percent in Shanghai and 17 percent in Hong Kong after it pushed back sales of its new flagship Haval H8 SUV. Goertek Inc., an Apple Inc. supplier, led declines for technology companies. Data today showed the consumer-price index rose 1.8 percent in April, compared with the median estimate of a 2.1 percent gain. The producer-price index slid 2 percent, the 26th straight decline. The Shanghai Composite Index (SHCOMP) slipped 0.2 percent to 2,011.14 at the close, extending this week’s loss to 0.8 percent.
- European Stocks Decline From Six-Year High Amid Earnings. European stocks fell from their highest level in more than six years as companies from Telefonica SA to Petroleum Geo-Services ASA (PGS) posted earnings that missed analysts’ estimates. Telefonica dropped 2.6 percent after saying first-quarter operating income slid 14 percent. PGS fell the most in almost three months after also reporting lower profit margin. Petrofac Ltd. tumbled the most since November after predicting net income will decrease in 2014. Vestas (VWS) Wind Systems A/S rose 7.6 percent after posting an unexpected profit in the first quarter. The Stoxx Europe 600 Index slipped 0.3 percent to 338.54 at the close of trading, paring its fourth weekly gain to 0.2 percent.
- Iron Ore Slumps to Lowest Since 2012 as Surplus Deepens. Iron ore retreated to the lowest level since 2012, capping a fourth weekly loss and nearing $100 a ton, as increased seaborne supplies of the steel-making raw material boosted a global glut. Ore with 62 percent content delivered to the Chinese port of Tianjin fell 1 percent to $102.70 a dry ton, the lowest level since September 2012, according to data from The Steel Index Ltd. The commodity dropped 23 percent this year, after falling 7.4 percent last year.
- Ralph Lauren(RL) Falls After Sales Forecast Trails Estimates. Ralph Lauren Corp. fell the most in nine months in New York trading after forecasting first-quarter sales that would be less than analysts’ estimated. The shares slid 5.1 percent to $144.25 at 9:48 a.m. and earlier dropped as much as 6.6 percent for the biggest intraday decline since Aug. 7. New York-based Ralph Lauren fell 14 percent this year through yesterday, compared with a 1.5 percent gain for the Standard & Poor’s 500 Index. Sales in the quarter through June will rise as much as 5 percent, the company said today in a statement, implying revenue of about $1.74 billion. Analysts estimated $1.81 billion, on average.
- Ukraine Says Some 20 Separatists Killed in East. Clash Comes as Rebels Push Ahead With Referendum on Autonomy. Police and security forces killed about 20 separatists Friday, Ukraine's interior minister said, in severe fighting between the government and pro-Russian separatists in the country's eastern provinces. Arsen Avakov said a firefight broke out in the southeastern city of Mariupol after gunmen took control of a police station. Ukrainian armed forces then stormed the building, bringing on "a full-scale military...
- Crisis in Ukraine: Streaming Coverage.
- Boko Haram and the Kidnapped Schoolgirls. The Nigerian terror group reflects the general Islamist hatred of women's rights. When will the West wake up?
- Small-caps’ slide reflects a market in trouble. Opinion: Stock bulls find danger under the Street’s surface.
- Art Cashin: Watch this 'canary in the coal mine'. (video) Art Cashin said he's carefully watching the Nasdaq Composite, the stock market's current "canary in the coal mine." The bulls are happy it successfully defended support around 4015, but remain cautious.
ValueWalk:
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- Stratasys(SSYS) sticks to forecast, disappointed investors sell. 3D printer maker Stratasys Ltd reported an adjusted quarterly profit that matched the average market estimate and stuck to its full-year forecast on Friday, disappointing investors who had expected better on both counts. Stratasys shares fell as much as 9.6 percent in early trading as investors also overlooked a better-than-expected rise in adjusted revenue, helped in part by the acquisition of consumer 3D printer maker MakerBot last year.
- Household debt is Britain’s hidden timebomb. The return of high consumer spending means we’re once again walking a financial tightrope.
- China deflation fears as price rises slow sharply. Economists warn "risk of deflation is looming" as consumer price rises slow to 18-month low.
- ECB: capital flight from Russia has hit $220bn. Outflows from Russia since the Ukraine crisis erupted may be four times higher than admitted by Kremlin.
- Putin Says Other Countries Must Respect Russia. Russia asking other countries to treat with respect its right for historical justice, self-determination, citing Russian President Vladimir Putin.
1 comment:
Debt deflation commenced Friday May 9, 2014, as most Equity Investments and most Credit Investments traded lower, as all The Currencies, that is the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, except the India Rupe, ICN, traded lower at opening, with the result that the US Dollar, $USD, UUP, popped higher, and closed higher at 79.95, causing disinvestment out of Global Financials, IXG, Nation Investment, EFA, World Stocks, VT, and Dividends Excluding Financials, IXG, as the Bond Vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.60% to 2.62%, in exercising their control over the US Federal Reserve. Electric Utilities, PUI, XUI, and Global Utilities, DPU, such as China Utility, HNU, traded strongly lower on the higher Benchmark Interest Rate, $TNX.
Inasmuch as investors fear that the word central banks have crossed the rubicon of sound monetary policy, and have made money good investments bad, investors sold out of Banco Santander, STD, which led the European Financials, EUFN, the European Stocks, EZU, and the European Small Cap Dividend Stocks, DFE, lower. Greece, GREK, led the Eurozone Nations, lower, as the Euro, FXE, fell lower to close at 135.75.
Deleveraging out of the Euro Yen Currency Carry Trade, EUR/JPY caused Spain’s Telecom Company, TEF, to trade strongly lower.
The Canadian Dollar, FXC, traded lower, causing disinvestment out of Canada Small Caps, CNDA, -2.7%, and Canada, EWC, -0.8%. Deleveraging out of the Canadian Dollar - Japanese Yen Currency Carry Trade, caused Global Energy Producer IPW, Encana, ECN, to trade 2.2% lower.
Most of the High Beta ETFs, such as Retail, XRT, that had sold off so strongly, traded slightly higher.
Natural Gas, UNG, traded strongly lower. Bloomberg reports Iron Ore Slumps to Lowest Since 2012 as Surplus Deepens. Iron ore retreated to the lowest level since 2012, capping a fourth weekly loss and nearing $100 a ton, as increased seaborne supplies of the steelmaking raw material boosted a global glut. Ore with 62 percent content delivered to the Chinese port of Tianjin fell 1 percent to $102.70 a dry ton, the lowest level since September 2012, according to data from The Steel Index Ltd. The commodity dropped 23 percent this year, after falling 7.4 percent last year
The failure of credit on May 9, 2014, was the most significant event in economic history since President Nixon took the US off the gold standard in 1971, and pivoted the world from the age of credit into the age of debt.
While Junk Bonds, JNK, traded higher, other High Yielding Debt, led Aggregate Credit, AGG, lower; the 30 Year US Government Bond, EDV, traded down more than the US Ten Year Note, TLT; Floating Rate Notes, FLOT, traded lower; and the Steepner ETF, STPP, traded higher, reflecting a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX; and the Zeroes, ZROZ, led Popular Notes And Bonds lower; all evidencing the failure of credit.
All Credit Investments, together with all Equity Investments, will be trading lower in a see saw destruction of fiat wealth.
Derisking out of Debt Trade Investments, and deleveraging out of Currency Carry Trade Investments, caused Global Growth Investment, DNL, such as Mexico Cement Manufacturer, CX, to trade lower, and introduces Destructionism replacing Inflationism, with the result that the much feared global economic deflation is inevitable.
Look for strong disinvestment to come out of The Most Carry Traded Nations, as Major World Currencies, DBV, and Emerging Market Currencies, CEW, collapse on the ongoing failure of credit, that began in April 2014 when, China, Russia, Developing Europe, and the US Small Caps trading lower.
Fiat money was coined by the Creature from Jekyll Island, and was a function of the age of credit. The new money, diktat money, defined as the mandates of regional fascism for regional security, stability and sustainability, is coined by the Beast Regime of regional economic governance and totalitarian collectivism, and is a function of the age of debt servitude.
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